ANALYSIS: Shady practices by registered mining companies cost Nigeria billions of Naira

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Six states in Nigeria have been identified as the top destinations for the illegal mining of solid minerals in the country.

In 2014, exports figures reported by companies were different from those declared by government agencies.

The company denied the audit team access to its documents during the validation visit. However, at the tripartite reconciliation meeting which the company attended, the audit discovered an irregular issuance of receipt for the sum of N28,813,021.20. While the receipt with number Z009454299 was issued on May 24, 2016, three other receipts nos: Z009449771-3 were issued for the same amount on August 11, 2016.

Specifically, Dangote Cement Plc underpaid royalty at its Obajana Plant by such deductions, to the tune of N40 million . It was also revealed that some expatriate companies do not have a trackable record of tax payment in Nigeria as they do not keep their accounts within the country, and they prepare their accounts in a language other than English.

Moreover, the NEITI reports have shown that Nigeria’s vast landmass may pose a serious challenge to enforcing the laws and regulations relating to the mining sector. Some of these laws have not been designed to achieve effective monitoring and compliance, measurable to global standards and best practices.

Plateau State is next on the list with seven illegal mining sites yielding tin, columbite, barite and zinc. Ebonyi and Imo States have five illegal mining sites each, while Enugu and Zamfara states have four sites from where minerals, which include lateritic soil, lead, zinc, and gold are mined illegally.

From 1903, the country had modest exploration and exploitation with intermittent growth, up to 1960. Tin, columbite, coal, and so on, were the early solid minerals that contributed significantly to Nigeria’s economy but declined due to the oil boom that started in 1970 till date. Though Nigeria’s economy is highly dependent on oil as the main source of revenue, the country has over 34 natural resources cut across the thirty-six states of the federation and the Federal Capital Territory.These resources include limestone, gold, coal, gypsum, kaolin, sapphire, granite, copper, iron ore, sand, clay, laterite, bitumen amongst others.the natural resources sector of Nigeria loses N50 trillion annually to untapped resources.

These companies are responsible for the extraction of valuable minerals such as gold, ore or other geological materials from the earth in Nigerian land without direct benefit to the government of Nigeria or its citizens. For ages, issues of transparency have dogged Nigeria’s extractive industry. The Nigeria Extractive Industries Transparency Initiative was set up in 2004 to ensure due process, transparency and accountability in payments by the companies and revenue receipts by the federal government.

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this call for restructuring fg should join (customs and firsc) for effective revenue collection

natural resources, for these massive corrupt practices it shows that the center( fg) is weak in administrative control

😁😁😁 we are still having oil as bench mark but if oil cease to be, what are we going to depend on. Diversification to other

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